high they were on pace to close earlier and the markets are motoring right along despite the recent dip. >> and the ten-year yields are rising >> 3.15. >> how long did that last? >> thanks for watching "power lunch." >> "closing bell" right now. >> tease time for "closing bell." it's shaping up to be another record day on wall street, but what are the red flags out there that you need to be watching out for? we will be explain coming up plus, honda teaming up with gm in a multi-billion dollar bet on driverless cars. former gm chairman bob lutz and former chrysler president jim press tell us what it means for the auto industry. and i'm sarahizen in for kelly evans. eight officials speaking out across the country we'll bring you the key moments from america's economic leaders

including fed chairman chay powell speaking in the next hour >> plus, what's keeping tim cook up at night? >> i see privacy as one of the most important issues in the 21st century. >> whether the government needs to step up privacy regulation. "closing bell" starts right now. ♪ because you're hot and you're cold ♪ you're yes and you're no ♪ >> good afternoon. a very warm welcome to "closing bell." get to those stories in had a moment but first let's check in on the markets the dow is on pace for another record close, but it's lost a lot of its gains currently up 75 on the dow >> the level to watch on the s&p 500 which is flirting with a record close, we were above it earlier in the session, watch the levels though at 29,375 marking a record closing high for the s&p 500. as the market holds firm near the record highs, we're seeing some weakness in several segments which have been getting

investor attention lately. cnbc's senior markets commentator make santoli has more on the hot and cold market as we look at some divergences. >> you caught the katy perry, the hot and the cold in. >> was that your idea? >> i won't take credit. >> it was your idea. >> we'll start katy perry every hour if it was up to me. >> i would love that. >> the hotline indexes are hot barreling to new records, but there's been kind of a line of complaint about the market over the last few markets small-cap stocks badly underperforming. the average stock in the s&p 500 really trailing the overall index here to date and banks have been a big lagard today interestingly enough all the trends are at least for a one-day basis reversing a little bit. a strong bounce in the banks and small caps are outperforming a bit, but it has still led to a lot of questions about what it means that the rally is not all inclusive. that it's basically kind of

selective within the tape and i don't know that there's a broughter real we've had these faiss before where small caps take a back seat and it doesn't necessarily mean the rest of the market has to get ways down and, of course, the bounces and banks in small caps will take the pressure off of that. >> persistently weak, industrials, auto, this is an evidence it's a warning sign for the broader economy and financials as well. >> and there's no doubt that you have to be aware of it it kind of goes into the whole weight of the evidence and i would be more worried about small cap and if you saw the other macro signals out thereto or economic weakness it doesn't seem like that's the signal that you're getting from the push-pull been the stock market. >> they have been warn down. >> but not the rest of the rear.

>> want to bring up, if we can, guys, an s&p 500 intraday chart. mike, about ten minutes ago we saw quite a significant loss of steam. >> yeah. >> we bounced off of it and didn't go negative. >> any explanation >> not really. >> so little to focus on in terms of a headline that i think people were throwing up their hands and wondering about some sort of mechanical shift because you did see stocks come down and a bid go back into bonds a little bit so i don't know that we can necessarily infer much from it. >> mike, great stuff. >> look forward to seeing you at the top of the next hour let's continue the market discussion further joining our "closing bell" exchange, bob dorin, portfolio manager at bd8 and steven p. grasso and rick santelli from the cme in chicago steve, i'll start with you. >> i didn't see that coming. >> steven p. who told us he's only called by cnbc. so we've corrected that. >> why that setoff have you got any further

insight? >> anyone can always guess at these things it was a headlines when yesterday we saw the pentagon headline on the ricin envelopes. it was tested today and i believe the head line came out sort of around that same time saying that it was castor, castor seeds, and the market sold off, so anyone is kind of just reaching for these things, so that would be my best guest that the algorithms sort of just knee dark jerk reaction sold the market off when they saw that. >> either way, steve, positive start to the quarter is that what is driving positivity more that be the headlines or fundamentals? >> i'm sitting here listening to the reports, buying the laggards coming in, that's a big case month end and quarter end. what rallied today, financials and basically small cap. if those things are going to rally, those are the things that people didn't own into quarter end or month end, so i think they are getting their day in the sun where they were underowned mutual funds year end, a lot of

them end september 30th, so that's why they are going to work in the laggards my best guest. >>ry, we should go to you on the move in interest rates part of the reason we're seeing strength in financials ten-year high for ten-year yield and you were with us at the top for the report services number what's the bond market telling you? >> you know, the bond market is telling me all lights are green, in the only for fed but for the economy at large at for investors to invest in the economy at large don't see any big snags out there at the moment, and, you know, maybe some out there will take that as a sign to be more cautious that's fine, too, but there's neat things going on the spread between tens and bunds is approaching $270 basis points i've never seen it there my chart goes back to 1989, nowhere near there, so that's significant. other significant aspects, the credit markets, the real credit markets, not the etfs with

regard to things like junk, high yield, there are some of the narrow spreads going back pre-crisis this is all very important because nothing is really signaling that there's any smoke out there that you should pay added attention, to and as for the yield curve, as we sit now we have a 30 basis point differential between 10s and 2s, and i do suspect that narrows a bit. i hope it doesn't, but what we really want to observe the next 48 hours two-fold. see how europe's and japan's rates respect this move in our rates, a, and, b, we want to pay very close attention to exactly what the dollar does and pay attention to how this spread on the junk and the corporate side ends up playing out, because to me you're not only going to see this type of a move in the treasury complex, i think you're also going to see maybe some selling in those better-behaved aspects. credit market because the need to reach for yield starts to

diminish. >> bob, how are you positioned at the moment? are you bullish for the rest of the year >> yes, i am, and into next year what i keep hearing for everybody, everybody is looking for the canary in the cool mine but there's no canary, and when you saw the adp numbers, the ism service sector numbers, it's showing how strong this economy is, and this won't be over in the next quarter or two, so i think most investors are saying i have to be bullish and invested but where there's so many like the high-flying pe you don't want to be in them right now until you start off more until you see the rotation chasing the undervalue poem are going for the laggards. when they catch up they will rotate out of them so i don't see any specific sectors but you're look at where to put money at work. this market is not hover. >> what about with the higher yields and now we're talking about real levels, multi-year highs. the fact that stocks rallied among with the jump in yields, is that be a sign? does that tell you the risk

appetite >> i think it does is the risk inflationary and what is this telling us? no signs of inflation. when the fed starts rating interest rates there is a lag from 18 to 24 months, but still no signs it's probably -- my best guess is what people have opined about is this global competition and still under capacity worldwide. >> mid terms, are they a worry for you, steve >> no, i don't think they are a worry. seasonally and historically they are a positive sign for the market, going into the market. this stage being up where we are, it's an 80% chance that we'll finish the year more positive s&p, the best month on a five year trailing is october iwms, the best month november. stay invested until year end. >> mid-terms, bob? >> i think they are watching because policy impact from this administration has been meaningful in the market as we know from trades, tax reform, et cetera, and when you look at the mid terms, even though -- even if the democrats sweep or it's a

split congress, i don't think it's going to make any difference because even if the democrats sweep they are not going to have a veto-proof majority if you look back historically, it's been very interesting back to 1930, almost 90 years, the market in the next 12 months after mid terms have been up 13% with the exception of two years, 1930 and 1938 so, you know -- >> let's hope it's not those two years. >> no, i think of the mid terms, maybe if it looks like the democrats will sweep, maybe healthcare stocks get a bit of a fright and once they realize dems won't do anything, it will be stable. >> rick, want to hear from you on this. i want to add one big question, the selloff on bonds and whether you think this is a reflection of the rising interest rates by the fed in terms of what we saw on the back of the economic data or inflation expectations? >> well, moy personal feeling it's probably a little bit of both, but i really don't think that rates -- i mean, i know the

markets have come off a little bit on the equity side i think there's a comfort factor here i think it would be more shocking if rates didn't follow the economy and what's going on in equities, but to weigh in on the mid termses, listen, i think this is huge i would take up -- take that book and i agree with all of barbara's statistics, but would i tear it up this one is different. no matter what you think of the president, and i don't mean to get political, but there's very little doubt that a pro-business president in november 2016 is the reason the market surged, even before he was sworn in. i think the opposite of that is possible considering how congress ends up getting divvied up if the democrats gain the house or specifically gain the house and the senate, the future of this president may be in jeopardy and if the future of this president is jen dishes everything we're talking about could be in jeopardy >> all right and we will leave it there, guys thank you. rick santelli, barbara duran and steven p. grasso. >> steven paul grasso. >> thank you, wilfred. >> you don't know what my middle

name is there, so there we go. >> are you going to share? >> it's not even really a name it's a word. >> i knew that, probably the fifth time you've been told. >> i'll remember coming up on "closing bell," facebook's 50 million user breach, just the latest in a string of high-tech hacks and tim cook is ramping up his criticism of silicon valley's policies we'll debate whether the government needs to step in and how. >> up next, honda is teaming up with gm in a multi-billion dollar bet on autonomous vehicles, but how soon will you actually see a car driving itself around your neighborhood? the top experts in the industry will weigh in, and we also want to hear from you reach out to the show on twitter or facebook or send us an e-mail we're back in a couple of minutes. this isn't just any moving day.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. welcome back to "closing bell." here are your dow winners at the hour caterpillar, boeing and apple in terms of the percentage winners, and the dow itself has been a winner, closing yesterday at a

record high. we're on a record high close watch again today. >> honda team up with general motors with a multi-billion dollar bet on autonomous vehicles phil bey low is in chicago with the details. >> reporter: this is a substantial investment by honda, and it reached out to general motors it the said that the cruise technology, the technology that it wants to work on in terms of developing a self-driving vehicle, so here's the investment and the partnership between gm and honda honda will invest $2.75 billion, take a 5.7% stake in gm's subsidiary cruise and today they will develop and build an autonomous vehicle now, separate from this investment, general motors will continue working with cruise with its subsidiary to develop self-driving vehicles. these are vehicles that we've seen we've had a chance to ride in when we're out in san francisco. at this point they are expected to roll out next year. there's no target date yet for the gm honda self-driving vehicle, but that will happen at some point in the future we're real at the beginning of

the race between a number of automakers and tech firms. in terms when these self-driving vehicles roll out. waymo expects to have at least an initial public use vehicle in phoenix area by the end of the year gm and cruise next year, that's the target date and a whole bunch in 2021. ford by itself and bmw teaming up with intel and toyota with irish. take a lock at shares of general motors, this is important that you remember cruise is now valued at $14.6 billion, guys, an increase of basically 11.5 billion just a few months ago. as that valuation continues to creep higher, that's the reason you see investors, at least initially moving into shares of general motors because the thought is they may spin this off at some point in the future, and it's that valuation that people will be focused on. >> all right thanks for the setup please stay right there for this conversation joining me for more to talk

about the partnership is michelle krebbs, executive analyst from autotrader. phil just laid out the timeline of when we're expecting all the autonomous vehicles. how big of a deal do you see the honda and gm cruise partnership today towards pushing gm to the top that have list to help them win that race for autonomous cars >> i think it's a very big deal. it's an usual arrangement to have two automakers do this together and, you know, adding cruise automation. i think a lot of this is about the money. when you think about how much it costs to develop these future technologies it's immense and we don't know when they will be ubiquitous or when they will get a return on that investment so they are sharing the cost and they are sharing the risk and i think that's a big part of the deal because at the same time honda and gm have to keep turning out today's vehicles for today's companies -- customers because that's what is feeling the -- the profits for these future ventures.

>> phil, i don't know if we can bring up the element you had on that sort of rollout timeline between waymo first and gm coming up and the toyota partnership, et cetera there's a few partnerships out there and as michelle was pointing to very few rather than waymo working on their own do we expect the other big autos not list there had to have to partner with one of those partnerships, or are they too late in the game now to go on their own? >> they may not partner with one of these existing companies that are on that list there, wilf they may be partnering with somebody else. there's always been -- look, daimler is working with bosh in terms of developing autonomous drive vehicles volkswagen has indicated there's a number of potential partners out there. i would not be surprised if we see almost all of the automakers and tech firms at some point working together waymo is a little bit different because it had such a head start and is considered to be the leader in this space ford stands out as perhaps the

most interesting because it's largely doing it on its own. yes, it took a stake in argo ai but it's not partering up with another automaker, and it's an interesting time with ford given the financial constraints that the company will see itself facing over the next few years. >> i was going to ask about that list because i didn't see tesla on it and they have their driver-assisted cars anything on the autonomous front? >> they plan on having an autonomous vehicle at some point in the future but they haven't given a definitive timeline. >> got it. >> you don't look at that and say by 2019 we're definitely going to see that from tesla, but it's also working on autonomous drive technology. >> michelle in, terms of this partnership it's very much on the autonomous drive side of things as opposed to the electric or battery side of things that these two are partnering. >> well, except that -- actually gm and honda have a long history working together they developed an engine

together years ago they are now in partnership producing fuel cell vehicles they are -- and so i would not be at all surprised to see this autonomous vehicle they are developing be powered by a fuel cell which would be very interesting so they have experience working together. >> so, phil, i mean, the other thing that strikes me about the list that you put out, how soon this is all happening. >> well, those are target dates. >> that's what i was wondering i feel like we've read a few high-profile cases of crashes from uber and tesla, wondering if they are really autonomous. is the safety level there and ready to roll out in the next couple of years? >> it's not there for fully autonomous, and those are target dates. look, we may seewhen the vehicles finally start to come out that they are going to be in small geofenced areas, a limited area with limited number of vehicles that are truly level

five and autonomous. you really won't see this take off in terms of you and i being out on the road and perhaps seeing an autonomous vehicle you really won't see that until well into the late 2020s and close to 2030. you're going to see these in very small limited areas again, take all of this with a grain of salt because the biggest problem that all of these companies face with this technology is making sure that it works completely, not just on the highways, not just on high traffic areas, but how does it work in residential areas when it has to go down an alley, et cetera. >> great stuff thanks for joining us. michelle crebs, our thanks to you both. we've got 38 minutes until the close. at session lows meaning the dow is up only 40 or 41 points height today was 178 the s&p now just positive only it's up three basis points so we've lost a lot of momentum in

about the last -- basically since we came on air. >> true. >> the technologies are still going strong, up a third and same with the russell playing a little catchup it was big loser yesterday, down a percent. after the break, shares of michael kors still really haven't recovered since the company announced its $2 billion versace purchase, but one firm is now saying the move will pay off in the long run. we'll have the details when "closing bell" returns t to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back to will be the "closing bell. the s&p just positive with 35 minutes left on the trade. let's check in on some individual stocks to watch luxury automakers aston martin having its first day of trade in london, the stock falling as they are worried about the company's ability to deliver on new plans. it's down 5% market cap is -- we stand only about $5 billion it's overexposed to the uk, only 25% of sales in the u.s., only 6% in china, so those are the opportunities, and a lot of the analysts saying it really needs to deliver on its new suv that hasn't come out yet. the hopes are pretty high if it's going to deliver on that in order to sort of justify its valuation. >> i think the yes is does it deserve a ferrari valuation? >> right. >> that was the ipo because actually i looked back, in the first four months after ferrari went public, the stock was down 38%, but then it had a tremendous run-up and now it's

up 156 since ferrari opened. >> yeah. >> there were a lot of concerns, but it has got its price range about 4%, 5% i was amazed the whole process that it's only a $5 billion market cap which reminds you how small it is as a company and when you compare it to massarotti, jaguar, bentley, rolls-royce, all backed by one of the big automakers and that's the problem it has. >> which do you refer? >> aston model has the ultimate brand ambassador, james bond. >> james bond, of course. >> wilfred has an obsession with james bond. >> is there he is, the most famous car from all the bond movies with the ejector seat in there. >> has a bond complex. >> i've dreamt of doing t vp v

and that's happened and i've dreamt of doing james bond. >> on that measure it's possible. >> i want to talk about michael kors. >> you had good points in there. city group regrading it. there are many opportunities to grow the sales and profits of the injuries chi brand coors is trade up of -- debate on the date of the purchase, when they played too much. they think the versace financial targets that they put out are fairly conservative. >> how much did it drop on the day? >> remember, the rumor of the deal came out the day before and fell a percent it closed the day higher but hasn't made back the ground that it lost in anticipation of that deal. >> up 3% today the market, s&p just gone neglectity the dow is only up 22 points, having been up 176 earlier, so

we're down >> a new tim cook interview and a discussion of whether washington needs to step in and protect your online privacy next

♪ ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪

welcome back to "closing bell." sara wants to talk more about aston market and james bond. >> didn't hit it hard enough. >> i feel like we didn't give enough on that. >> hovering around the flat line as we discuss at the top of the show and losing momentum in the final hour of trade but for the most part still positive the dow only up by around 44 points, having been up as many as 180 in terms of sector performances, yields have risen. the yield curve has steepened, but, again, that's lost steam and that's, again, why markets have lost steam. >> time now for a cnbc news update with sue herera >> hi, sara, hello, everyone the first test of the presidential emergency alert system is considered a success an alert was sent to cell phones at 2:18 p.m. eastern time today. it is designed to alert people of threats to the country from things like a potential missile

strike to a natural disaster. aerials showing hundreds of fish washing up along the north palm beach florida shore the region has been contending with red tide, but it's unclear if that is what called the fish. tests are underway. crews are surveying the damage from three confirmed tornadoes in the new york city area they touched down in west chest every, ro ier and rock lapd and no worth on any serious injuries. and apple unveiling its new york city bagel emoji which will be part of its upcoming ios 12.1 up date b update but new yorkers are saying it locks more like a factory made previously frozen bagel. >> it's an emoji though. >> it is, but i kind of agree with them. >> no. >> the handmade ones >> it should have more flaws. >> right. >> and should have like sesame seeds or poppy seeds or

everything on them. >> emojis are this big. >> this is what bagels look like. >> should be twisted to sarah's point. not perfect. >> new yorkers are just so obsessed with their bagels and proud of them. >> and pizza at least you've got an emoji we don't have a roast beef and yorkshire pudding one. >> not yet. >> they should make one. >> is that one thing, roast beef and yorkshire puding >> you eat them together on sunday lunch that's a good sunday lunch sue, thank you very much. >> told to move on in no uncertain terms in my ear. apple ceo tim cook speaking tonight addressing data privacy concerns. >> a narrative that some companies will try to get you to believe is i've got to take all of your data to make my service better well, don't believe them the whoever is telling you that, it's a bunch of bong

>> the show is "vice news" tonight. a preview happened last night. does the government need to regulate data privacy? joining us now the president of the center for democracy and technology and roger mcnamee roger, let me start with you is it fair for comments in the past and comments like this last night to sort of frame apple as being better on this issue of data privacy and data protection than some of the other big tech companies? >> so, first of all, i have to say it's delightful toll talk to frost, wilfred frost. >> roger, oo 8 to 007. continue. >> exactly the answer it's indisputably fair apple has done a number of things over the last year to protect security privacy and create security, and it's very simple things like with their facial recognition they only store that data on the

iphone, and with things like siri where they process it locally so your data is not in the cloud where it's vulnerable, and apple does not talk much about this, but the difference is really striking, and i think, you know, for an android use, the thing you have to recognize is that the reason the price is so low is you're actually giving up all of your personal data and you're giving it up in ways you can't actually forecast in terms of how it will be used, and so that -- that really does i think affect equation a lot. people need to be more sensitive because the hack at facebook, some of the issues that are going on with internet of things, with, you know, with -- with the various amazon alexa products and the google home products, those are things that really, really are invasive surveillance, and where you don't even need to be a customer to be affect, so wilfred, i really think cook is not only right on this issue but this is a place where i think the government will have to step in.

>> what's interesting it's not just cook, it is also facebook and google and twitter they have all said there could be a need for regulation so they are talking about it members of congress are talking about it people in the administration are talking about it, and is anyone actually talking specifics of what any kind of privacy legislation would look like in this country >> yes we at the center for democracy and technology here in washington, d.c. and in brussels have been supporting omnibus federal privacy legislation in this country for the entire time we've existed since the dawn of the professional internet. i'm delighted to see so many corporate actors step up to the plate and say it's time for baseline rules that are fair to all players, the industry and most importantly the individual consumers wherever they are in the world. the united states is not on the global playing field in terms of data privacy of law enforcement we have a sectoral approach. we've got things that protect kids and health and financial services, but there's a heck of a lot of data being collected, as roger said in the internet of

things, in your homes and cars and dailyly. we need some baseline permanent rules in the united states to protect the individual rights. >> do you think we're headed to a place one day where consumers will own their own data? is that going to be enforced by governments, sore that wishful thinking from the perspective of consumers? >> i don't think it's wishful thinking, and i also don't think ownership is the right model though it's a very u.s. specific model. we think of it as a human right and a right to dignity and some control over your own data that's not to say you don't share it to get good services and products like the ones we've been discussing but that you have ongoing rights and interest in that data no matter where it goes including the right to delete it sometimes when it's no longer of use to you and the right to amend it and to simply know what's being decided by you by companies and governments that are holding your information so whether it's a property construct or human rights construct some ongoing recognition of the rights of the individual, we need to reabout the equation between the

individual and company >> so, roger, do we need a gdpr like the eu has, and i guess i'm wondering should we just replicate that because if not isn't there an opportunity if this happens all over the globe there will be a different arbitrage of the regulations on tech >> sara, i think you've framed the question exactly correctly gdpr is in many ways a european centric model and the basic notion that each person should own their own data and they should be able to control how any company uses that data, i think that is a universal point which wassing just being stated a moment ago i think we need to have that in the united states and sew lofgren and roe copper have in california proposed in the congress a data bill of rights that literally incorporates that notion, but i also think that we have to look at things like extending the fiduciary rule which professor jack balkin at yale has suggested where, you know, if you're a banker or a

lawyer or a minister, you're not allowed to share people's -- you know, the information people give you in confidence with others for profit, and there should be something like that relative to data in the united states, and -- and all of these things, the challenge we have is that the problem is right now in the process of putting this into law takes some time but it's how i spend all of my time and how our team works and i know nola is doing the same thing. there's lots of people who understand how important this issue, is and i really laud apple for actually implementing these things in products without being forced to by the government i think that's, you know, they really are a beacon of hope. >> all right and we should note that you own the stock as well as amazon and facebook. >> i do, you bet. >> thanks for joining us this isn't the first time or last time that we'll have this conversation so believe it or not, the

holidays are upon us just 82 days left until christmas. >> we love this countdown. >> coming up, we'll tell you what the national retail federation is forecasting already for the holiday shopping season. >> and that's the uk prime minister coming up, but theresa may kind of wins her credit. the first time you see it you shudder. by the end of the day it's like respect. respect to the prime minister. >> i love it. >> we're going to discuss her entrance and her speech coming up

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welcome back to "closing bell." british prime minister theresa may dancing away on to the conservative party stapling here in birmingham. >> i think she got dance lessons since the last time she danced in africa. >> really? >> not much. she looks more like she's feel it. >> kind of won applaud its on

th -- kind of won plaudits. >> i like this it was a very serious speech, right? >> a very serious speech >> in was a light hearted moment at the start of it anyway, let's get to the quote of the day from the speech that she's sticking to her brexit plans and warning that she's still considering a no deal. >> no one wants a good deal more than me, but that has never meant getting a deal at any cost britain isn't afraid to leave with no deal if we have to but we need to be honest about it leaving without a deal introducing tariffs and costly checks at the border would be a bad outcome for the uk and the uk and the eu. >> the key headline is that she didn't change her tune on

brexit there was speculation that she could toughen her stance and say what boris johnson and boris johnson fans wanted to hear but she didn't, and the crucial focus is on october the 18th and october the 19th, the next eu summit looks like she will survive. she survived the conservative party conference and should survive until then and has to come back from that meeting at the eu with some kind of win. >> wonder if the italian drama takes some of the heat off of her because they also have to go into an eu summit presenting a budget above the target, and that's going to be a big problem if that continues as well. >> takes some of the focus for financial markets and people like us, doesn't in terms of the power play in uk politics right now in terms of having to come back with some kind of win and i don't think it would really change the negotiating position of the europeans yet maybe if there was a real kind of standoff with italy than maybe >> you know i lost dancing moments and you know what that reminded me of

do you know? >> british prime minister dancing? >> love actually. >> come on >> i thought -- yeah. >> hugh grant, best character of all time. >> he was good at that. >> a national moment. >> sadly a number of these from prime minister may and she's owning it and gaining some plaudits, double down and coming out with a win 13 minutes left to trade we're near session lows, and we've just come off the session lows but we're certainly far from the highs the dow is only up a quarter of a percent and the s&p is just positive. >> when we come back, the national retail federation predicting a strong holiday shopping season. a full report of how big of a bounce retailers could actually get when "closing bell" comes right back $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time

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we've got a news alert on cbs. sue herera here with the story. >> cbs executive has been placed on leave after multiple individuals at the company, according to cnn, accused the vice president, senior vice president of talent for cbs, vincent farfalae of using sexual and homophobic language in the workplace. cbs gave in statement to cnbc.

it says, quote, the comments reported in this story are offensive and not consistent with the standards that we expect from our executives or the culture we want at cbs the network investigated a complaint for inappropriate language that was received in january 2016 corrective action was taken. however, since concerned voices are speaking up nearly three years later, an additional review is warranted. mr. farfalae has been placed on leave while we look into that situation. that's what we have at this point. wilf, back to you. >> another one to monitor for cbs. thanks so much, sue herera, there. the national retail federation forecasting a strong holiday shopping season. cnbc's courtney reagan has more. >> it's expected to be a pretty joyful holiday season for the nation's retailer. the national retailers federation forecasting retail sales to increase between 4.3% and 4.8% reaching up to $720 billion. now the prediction is below the

group's 5% growth rate from last year, but it is above the five-year average growth rate. the optimism comes from the expectation that the strong economic backdrop will continue. inputs like all-time high consumer confidence and low unemployment and even the commerce department's retail trends all go into the prediction now, the forecast is expected for a strong season but not as high as what we saw from deloitte their expectations is looking for sales to top $1 trillion, growing as much as 5.6%. surveys are also starting to trickle out. these are different from the forecast remember, surveys reflect what consumers say they are going to do or buy, and cnbc got a sneak peek at alex partner survey. 87% will spend as much or more as they did last year, but tariffs could move shoppers to make some different choices about what they buy. the retail consultancy survey consumers found 48% said they are willing to switch brands if

tariffs increase prize on the products that they buy by more than 10% 37% said they plan to buy more american-made products in the year ahead of course, intentions are one thing. actually following through and doing it can be different, but that's the intention at least. sarah. >> well, i would think it would be good after the very strong consumer confidence numbers we've been getting courtney, thank you. >> yeah. speaking of retail technology and retail are among the best performing sectors. dom chu has more >> there's been real drivers with regard to the long-term trends in the market, and we did see, of course, record highs, and we're sitting in the u.s. markets for those. let's take a look at many so of the stocks that are really driving the trends higher and ones that are keeping the trends intact for the upside. looked at the s&p 500 and looked for companies with market caps other $100 billion loosely what some call the mega cap stocks, an of those how many are trading at least 10% above their 200-day moving average

that is their long-term trend line turns out only about 25 s&p 500 companies fit that bit among them, you've good dow component like nike, 14% right now above its long-term average price so helping to drive things trend-wise to the upside microsoft 17% to the upside that merge of retail, discretionary and technology netflix 19% above its trend line highs and apple hitting a record high and eli lilly, one of the numerous meg cap drug stocks, eli lilly, pfizer, merck, trading above their 200-day moving averages and when we talk trend lines that indicate perhaps bullish action to come, these are some of the mega cap names to watch to make sure the long-term trend lines are in effect if they turn, that could signal something deeper and darker for the markets overall. back over to you, guys. >> dom, thanks very much dom chu back at hq for us. coming up next, out with the

closing countdown. five minutes left to trade. >> and after the bell, general motors and honda are teaming up to build autonomous cars we'll talk to former auto executive bob lutz and jim press about who else in the auto sector could pair up next. memor. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. welcome back to "closing bell." two and a half minutes left to trade. let's start with the intraday.

you can see how it's been a very positive day of trade right up until the final hour got a little bit of a selloff and went negative and just 10 or 15 minutes ago, and now we're back positive. if we look at the ten-year treasury note, you'll see that has influenced things as well. we did see yields rise up the strong data this morning and as we saw the equity market pull back in the final hour of trade did see the yield pull back as well all linked together and it's 3.157. a very nice intraday rise that we'll end with if we look at the four indices overall, we'll see how the s&p is up. dow up 0.2% and nasdaq 0.3%. russell which has had a tough week prior to today is rising. let's bring in bob pisani. that interest rate has affected markets. >> right on target. >> you don't say that every day. >> not usually off target.

>> usually you're on target. you're very good, i have to say. ism services is what moved the market at 10:00, boom, on the yields, wilf had it, we went from 308 in the ten-year to 318 by 10:30 that's a huge move in a day. let's go long stocks and let's sell the bond market and then suddenly we topic around 230 and everyone said we'll start buying bonds and selling stocks clearly a bit of a reallocation. you saw enormous volume in the etf surrounding the ten-year and 20-year treasury look at the ief or tlts, etfs, look at them selling them all day this is a price here on the 20-year plus bonds and the 2:30, boom, everyone decides to buy. a little bit of a reallocation long-term and great u.s. economy

and services indicated that and overall, still a health, healthy day. >> and in terms of the ranges, the dow is back again, just 57 points higher on the dow the low of the day was up 40 just off the low of the day and well off the high. there goes the bell. we are roughly flat on the s&p, and the dow is up 48 points p.ring the bell here at the big board and the nasdaq is home bank corporation that does it for the first hour of the "closing bell." sara, back to you. and welcome to "closing bell." i'm sara eisen here for kell evans. wilfred frost joining me in a number wall street finishes not as good as it was in terms of the bullish momentum but good enough to get a new record high for the dow jones industrial average as long as it finished higher, we'd get a new record.

s&p couldn't quite get there earlier in the session when things were looking stronger, it was tracking towards a record close. the level to watch would have been 2930. as you can see off of those highs. nasdaq closing higher by a third of a percent so technology bouncing back today. the banks also had a very strong day. best performing sector in the s&p off the higher treasury yields and the russell 2000 also got a boost. not enough to make up for the declines of this week and still up a percent shares of general motors finished the day honda while shares of honda sank on news that the japanese automaker will be investing billions with gm to help develop autonomous cars i wonder if it will spark more partnerships and deals, we'll have that discussion coming up let's talk about the record-setting market. joining the panel, cnbc market commentator mike santoli and jason trennor joins us

svb financial was the winner and international paper was the biggest loser. dow close at a record high and finishing higher by it looks like 56 points this is the 15th record close for the dow this year. more than 100 record closes for the s&p since the election something president trump was tweeting about recently, but all we needed was a higher close why did the averages and the dow seem to lose some steam? >> further progress. the way the market is set up right now, the bulls and bears always play a close game the bulls have been winning most days and making the most progress and there's always an understone of something taking a back seat or moving to the shrines. i think that's basically the story again today. 60% of all volume on the new york stock exchange was up meaning 40% was down that's the kind of environment, and i think the key themes today. banks and small caps bounced where they had to because had they not responded to them being very oversold i think a lot of

people would have said what's the secret story of what's going on that's negative and that didn't happen so it's a bit more of the same. i don't know if these thresholds of treasury yields got people a little bit spooked, seemed as if the ten-year got above 13 and the 30-year got above 330, that's when stocked backed off. >> whether people got spooked at the end of the day, it's because of very strong economic data how optimistic are we that it can be continue? >> i think you can be pretty optimistic that the economic data can continue to be quite good the difference now i think versus -- during and after the financial crisis, financial markets freely outperform the economy. i think you're in a situation now where the economy is going to start outperforming the financial markets to the extent it will suck out more liquidity, and we can discuss the policy mix that allowed that. president trump's policy mix is

extremely stimulative and phenomenal gdp growth which suggests you'll get higher rates and that suggests earnings multiples will come down if there's good news it's good for active managers and dispersion of returns. it's not going to be get the returns that you did in the past, in my opinion. >> going into earnings season now and the third quarter, and, i mean, if you look at the numbers, mike, they are pretty strong for all this talk of peak earnings, still looking at 20% plus earnings growth. >> yeah. >> the question is are we going to start to see warnings on the tariffs and strong dollar and a bit of that already from pepsico and a lot of conservative outlooks which wouldn't justify the stock prices >> there's been more warnings, companies giving negative guidance than there has been in several quarters you can plug in great earnings growth every quarter this year and the market says that's great, that's our base case. that's what's supporting stocks right here and why we're up 10% year to date but how much

further can i extrapolate that out and the what are the offsets in the form perhaps of higher yields down the road so i don't know that it's going to be -- you know, earnings season has not been when this market has made the most progress it's before and after typically even though earnings have been great. >> jason, talk to us a bit more about the point in the change in liquidity. is that going to just apply to equities >> i think it applies to all financial assets you had a policy mix during the obama years which was very money and very easy monetary policy and very tight regulatory policy on banks the irony is that that greatly benefited the wealthiest people and greatly benefited financial assets now you're in a situation where that's changing around i would expect higher yields and stocks to continue but, of course, it's going to be difficult for them to continue to grow much greater than the pace of earnings nominal gdp growth was 7% in the second quarter, okay

you know, historically ten-year treasury yields are roughly about where nominal gdp growth is so we're very much under where you would be part that have is because where rates are globally one of the things last year, one of the things you're starting to see is more of a fiscal response to slow growth outside the united states. that could allow rates to move higher. >> take that one step further. you think it's international rates that's keeping the difference down rather than inflation about to fall or gdp growth to fall. >> italy was interesting because it's another place where you're seeing a lot of populism, and now there's a focus again on nominal gdp as opposed to real, and if that takes off that means rates can globally rise which in my opinion would remove the anchor from long-term interest rates in the united states. >> underpinning this is monetary policy and on that note six regional fed presidents along with fed chairman jay powell all delivering remarks today you're ylan mui joins us now

with some. highlights for investors ylan. >> reporter: they don't call it an open-mouth strategy for nothing. most of the fed speakers did not touch on monetary but the chicago fed president charlie evans told cnbc the economy is doing extremely well, fundamentals are strong and low inflation expectations give the fed a little bit of wiggle room. >> long-term inflation expectations are now, in my opinion, a little bit too low. we don't need to fight that battle so we don't have to raise the funds rates at restrictively we have been in the past. >> reporter: he supports continuing gradual rate hikes and says the fed is close to achieving its dual mandate what could go wrong? well, there's two potential risks today, a hard brexit and a political crisis he didn't explain what that meant, but he did suggest that uncertainty could be holding back business investment, so the new trade deal between the u.s., mexico and canada could end up

bolster the sentiment. we're waiting for fed chair jay powell who will be taking a conference in d.c. powell has been trying to prepare investors for less guidance from the fed. officials might not talk less but they may say less. we'll get back to powell if he says anything. >> ylan mui, thanks very much. as we look at the big jump in bond yields today, guys, what's the expectation for monetary policy? are three years baked in, i don't know that there's full connection you get the three a lot of people feel that data will spp it but don'tful -- assume that we'll have a big tightening response to that if it's a hot number, he's made references to the late '90s period where greenspan allowed the economy to run hot for a

while before trying to restrain it so i don't know if we can interpret that much from what we're going say here and assume that the fed will be full steam ahead. >> jason, what do you expect for next year? everybody thinks december, but next year is the big swing factor. >> we're expecting two which is because we're afraid if you get three or four. at the current pace it looks like the fed will tighten until something breaks which is kind of normally the way it works in a normal cycle of course, this is very different because you have a positive real fed funds rates for the first time in ten years and things are change considering at the margin. >> did you see the service numbers today, record high. >> what the marks can take and

the -- what had the markets can take -- you can get more monetary policy as the market gets more restrictive because the cost of capital will diverge more for markets as you go along. >> remarks from fed chair jerome powell have cost the stock market $1.5 trillion in market cap this year, noting that his public remarks have coincided with a number of stock market drops. it's a fun article. >> is this after the press conferences? >> comes after he reports and in general we see slight market movements so much clearly there is baked into what people expected coming into it, but in general he's soothing markets in quite a good way people are kind of embracing his capital market knowledge. >> i think so. i think in general the transparency and the kind of -- the way he makes the next decision that the fed is going to have seem like common sense and i think it's appreciated

the $1.5 drill crop, it's adding up in a cumulative way all the market losses as he's been speaking it's not like the stock market would have an extra $1.5 trillion in value today if he didn't say anything. >> the market would be down 7% if it were cumulative, $1.5 trillion off a $20 trillion base i understand what they are getting at, but the market is up 10% year to date. >> investors seem to be okay with his pace of rate hiking the president isn't a fan of it. >> right. >> but it doesn't -- it doesn't feel like a particularly controversial rate right now. >> rates by any standard -- monetary policy by almost any standard is still quite accommodative. just less accommodative than it has been in my opinion that's very good because the economy has been too dependant upon monetary policy without the other tools for too

long, and this gives the federal a lot more flexibility the next time you do have a problem, so i'm very much in agreement with the sent in the around the table. this yesterday has done so far so good. >> chairman powell is speaking and we'll bring you the highlights when and if they arrive shares of aston martin had a rough day, stocks finishing low on concerns on whether the company can be successful on the new models, the suv, which they are resting a lot of their bets on it. closed down 4.7% mike, you came across a fun tweet, a fun chart, relating to aston martin. >> it was just a tweet yesterday basically saying that over many, many years a takeover of aston martin, here you go, has coincided with significant market tops or financial crises. not all of those i think are remembered as financial crises,

but 2007 and '87, all significant tops there are other companies like this, sotheby's has been a luxury bellwether for luxury and appetite and has tracked with the stock. >> it's an interesting thought process with aston martin. you can understand if it was simply going bust and needed a recent takeover. tried to look back on each of the years and some of the takeovers were more organic and had nothing to do with whether the company was struggling or not. aston market has had a checkered history needing extra bailouts and more funding and on gap measures it's interesting. >> it's really a subscale luxury niche brand, right that's what we're talking about, and that's not necessarily going to be an all-weather company.

>> did you know it was in james bonds movies >> of course. >> i covered that one. >> i guess you owe me that when i said did you heart katy perry song >> i did which is why i pointed it out when you talk about the whole idea of finding market tops or reading the tea leaves on the signals and you hear fed presidents or larry kudlow at the white house saying no sign of recession don't see anything in recession, what do you think as an investor do you see any of that >> i don't see much of that. when i think about what causes recession. normally inflation rises to the point where the fed cuts off credit i would say inflationary expectations are still relatively normal and they are not tightening aggressively. another way you get a recession is through some sort of policy error, fiscal regulatory trade i would say, you know, fiscal and regulatory are very stimulative and trade, people are quite worried about it, but the administration seems to be knock some of those pins down whether it's canada or mexico and china will be the big, and you don't see that, and there's

always a possibility of the bolt from the blue. there's not a lot from a traditional sense where, sara, can you point to what's happening and say that a recession is imminent. i think, again, i think inflation generally speaking is the most important thing to watch. inflationary expectations. >> okay. we will continue the market discussion in a moment, but we've got a market flash first of all dom chu has the details. >> shares are down about 6% in after hours trading on scarce -- on 35,000 shares worth of volume because tilray put out a notice saying they intend to issue $400 million worth of convertible bonds subject to certain restrictions in it canada to canadian investors they will be convertible to cash or shares or a combination of the both all of the details have yet to be determined, interest rates, conversion rates, that will happen at the time of the price

of offering. the idea is that this company is trying to raise capital. they are doing so with convertible securities that could have a dilutive effect on the ownership of the company and that's why shares are lower and still something to keep an eye on the pot stocks have been very hot and we already knew many would look to raise capital and tilray looks to be doing so with issuing bond convergence. >> 50% move for tilray, mike, in perspective. >> everybody knew they would have to raise more capital if you had an elevated stock price and you went out to sell new common equity to institutional investors, they might say no thanks. convertible note, the issuer gets credit for how volatile the stock is there's more willingness for the buyers to take down if you have a volatile stock. >> and brings us back to the point when everybody said they are a takeover target and the stock ran up too high.

>> priced themselves out of a strategic fire. >> talked about exuberance and risk-taking it and do you see any of that in the pot stocks? >> i do. i think what's interesting is part of the reason why this has been largely an unloved bull market for nine and a half years is that so many of the most exciting stocks have remained private, so the most exciting companies, airbnb, uber, or so many companies and private markets have froep dramatically and any time there's a which have for making speculative gains people file in last year it was beconand this year it's can in a bice stock. the more important point it doesn't seem widespread. there's pockets of excess that's absolutely true. we're talking about the auto stocks before the ought oakes stocks were trading at five times earnings again, that might be a sign that you're getting closer to the end of a cycle but i'm not sure given what's happened economically. >> it's the sign of a hot and

cold market. >> hot and cold, katy perry. >> thanks for joining us look forward to your return. >> speaking of automakers, they have seen the future and the future is driveless cars up next, two legends of the auto industry will be here to weigh in on where they see this heading. >> and stocks enjoying the best day since july the 9th but one former presidential candidate is declaring war on the big banks and not for the first time stay with us that story is coming up.

bloebs has entered to value strategic alternatives the company says this follows expressions of interest from multiple parties and making an offer to acquire the company including the chairman leonard riggio the company is setting up a commit -- a special committee of

independent directors to look into the strategic alternatives. the stock is up about 21% in extended trade of course, it's been a challenging year and not many years for barnes & noble back to you, sarah >> a big bounce in the shares there, seema, thank you. honda and gm today announcing a partnership to develop and build an autonomous vehicle and they will vest $275 billion in gm's cruise holding with $750 million being invested immediately. the investment will give honda a 5.7% stake in the gm cruise holding business. >> is this the beginning of similar partnerships coming with other automakers we'll discuss this with bob lutz and jim press, former president of toyota north america and chrysler bob, i'll come to you first. i mean, what's your view in terms of how significant this

is this is a partnership between the two automakers and not in this area. >> that's true gm and hond a have collaborated on other ventures that require a great deal -- a great deal of engineering but not that much in near-term revenue, and certainly fully autonomous vehicles fit that category. as was pointed out, this isn't gm, this is the is up sidry which has a market cap of over $14 billion and $15 billion and it's good because gm's cruise automation is one of the two companies that's going to be a leader in the development field and the other being waymo and -- and the japanese automakers have been a little bit slow, especially honda a little bit slow to embrace the development of fully autonomous cars, and this is a quick move

which gets them up to the first tier of whatever is going on there and it's advantageous to gm it increases the market cap and gives it additional capital, et cetera, but there are so many demands on automakers these days for, you know, plug-in high brirksds fully electric vehicles, autonomous vehicles and semi-autonomous vehicles there's not enough engineering manpower to go around and what this will commit with honda committing a number of its engineers to the project, it can be realized a lot quicker. >> jim, how do you see this market shaping up looking out in a few years, and how many players will there be? another, is there a need for every single car company to have their own autonomous system or

is everybody going to partner up like this? >> there's a need for everyone to be investing. there's a lot of investments being made like a roulette table and what company and technology are going to survive, but the fact of the matter is there's going to be a significant growth in the popularity of these vehicles short-term it's going to be taxis, ride-sharing services, commercial delivery advance but long term it will be much more involved than the entire industry what happening it's not just driven by the need for technology, but for -- from customers' point of view, for safer vehicles, less traffic and for people that can't drive. there's a number of companies investing, and the fact of the matter is it's really good for the industry and it's growing the new technology and new jobs for the future that will be taking the place of the traditional auto companies in the next 15, 20 years. >> jim, a question i always ask

on this topic and think about on this to im, is there there be a huge new market? whoever gets there first will they dominate the auto market that hasn't happened simply when an automaker brings out a new car. >> they had a great question. >> jim, condition. >> there is an advantage if it's done the right way toyota did that with the prius and hybrids, but it isn't one that has to be the mover because this technology will move quickly and there will be some folks who come along and develop it right now began motors is clearly one of the leaders as well as waymo. other companies are watching and learning from it, and they are really expanding the knowledge of ai and other applications to this industry. >> bob, i wonder even if taking

this whole idea of cooperation a step further whether at some point there will be some kind of industry standard or centralized utility, at least for the data or for some kind software protocols where everybody is operating by the same basic rules i'm not sure how this would evolve but idea of competing ways of going about this if everyone is going to go semi-autonomous seems like maybe not the most efficient. >> well, look, first of all, there's going to be two kinds of autonomous vehicles. outside of the main metropolitan areas of the world, out in the suburban and rural areas people will buy cars from the dealers just as they have been for the last 1 lunn years and so00 yeare autonomous and you'll cruise from new york to chicago without touching the steering wheel and that's one kind of autonomy and a system where multiple people

can exist, and when you get to the metropolitan areas those will be dominated by robo taxis and privately own vehicles be they human driven or autonomous will not be permitted into the city the purpose is fast traffic flow and no congestion so you'll be able to drive your car to the city outskirts, park it into a lot and take your autonomous vehicle for the travel inside the city, now it's clear that -- let's project into the future and say the two dominant players will be waymo and cruise automation/gm and its partners, those vehicles will all have to, while the internal controls and the internal software in the cars may be different, but way they operate in the urban environment what, signals they respond, to how they react and

how they are being kept track of by the central computer, that is going to be common and it's just like today we have common emission rules and common fuel economy rules and each manufacturer can device various ways to meet them, but the rules of what the end result is, that's going have to be commonized and that's why the entire automobile industry is starting to discuss how do we make this happen, and they are also talking to regulators around the world because the whole thing will have to result in one gigantic system that operates for everybody. >> it still seems so far off into the future, but certainly investors are putting money into it guys, thank you. bob lutz and jim press. >> james bond wouldn't get in a self-driving aston martin. >> i think that's very bond-like. >> definitely not. >> seema mody? >> got a deal in the cloud space

with cloudera jumping 14%, an all-stock deal without $14.2 billion and stockholders will now own approximately 60% of the equity of the combined company and horton stockholders will own approximately 40%. cloudera will take the reins of the new company. this is a company that went public in april of 2017. back to you, wilf. >> thanks very much for that one. up 14% let's take a will be at how we finished the day on wall street, the dow was higher and off its highs, up by 54 points the high of the day was up 78 points, the s&p just fractionally higher. the russell having suffered significantly the first two days of trade this week was up 1% let's have a news update now with sue her rare a. hey, sue. >> hello, wifl, hello, everybody. republican senators may get the results of fbi investigation

into brett cavanagh as soon as this afternoon the probe was ordered following the supreme court nominee's testimony last week over sexual assault allegations. a volcano is erupting in indonesia right where the deadly earthquake and tsunami hit last week authorities are warning planes about volcanic ash in the air. so far no evacuations were immediately ordered. an investigation is underway into a rash of break-ins at a university of cincinnati parking garage thieves broke into about two dozen cars overnight and stole one of them. no word if any of it was caught on video. and this is good news for wilf airman seats may soon be guessing bigger which means more leg room the senate approving legislation that orders the federal aviation administration to set new standards. the varls been under fire for shrinking seat sizes and president trump is expected to sign the bill. >> i love this >> no way they would have done

it without government forcing them. >> absolutely. >> each year they have gotten smaller and smaller and smaller. >> even i think they are small >> you have to pay for that extra comfort. you can't sit in the normal one. >> that's good news for you, wilf. >> it is. >> i've been on a plane with him. he has to really curl up it's funny sue, thank you. >> you got it. president trump tweeting this morning about the new nafta 2.0, usmca deal that he struck this weekend saying mexico, canada and the united states are a great partnership and will be a very formidable trading force. we will now because of the usmca work very well together. great spirit earlier today we spoke to the u.s. chamber of commerce ceo tom donahue about his take and, remember, he represents all the american business, the biggest lobbying group for them on this new trade deal. >> some things we're very happy about, and we're just beginning to go through it and some are staying pretty much the same,

and there are some changes that we're going to have to work with remember, what happens now we have a couple of months, i hope shorter, to sort of get this all framed out and appropriately put in trade language and there will be some fixes we want the president to keep going on china, and we want to remove as quickly as we can trar i was on steel and aluminum and other things that are not necessary now that we've come to an agreement. >> my reaction is that they are just happy that there's a dole and it includes mexico and canada because for a while there there was sort of a question mark about that. as far as the finer bryant and he referenced this, there are some questions about how friendly it is for business. "the wall street journal" in the op-ed said it would raise the cost, for instance, for automakers and make some tougher regulations as far as how many

parts need to be made in north america and paid at higher wages in places like mexico. >> actually, those priorities, which are the u.s. priorities was really about workers it wasn't necessarily about the manufacturers as much, and i do think we'll see if it survives into a final agreement but i agrooel with on the whole sense of at least there were terms the u.s. was willing to sign on to and make a deal. this was a sense that being aggressive and demanding on trade was the goal itself as opposed to coming to an agreement. >> the timing, month left until the mid terms, this framed. >> politically as a victory. >> sure, and the hard battles going on with china can also work into that dialogue perhaps positively. >> still no clarity on what happens to the steel and aluminum tariffs which are still in place in canada for instance, against canada and those tariffs are back and forth. >> and with the eu there's no deal there yet and that's a factor that could switch that off for everyone, if and what that happens.

>> a record high for the dow a technician will tell us which areas of the market can grow. >> and the nfl scoring a ratings touchdown over the weekend we'll break down the numbers and discuss whether that bstan stoo c (guard) what i've witnessed... controlled fury. freakish intelligence. wicked seduction. these endeavors will rattle your soul... and challenge the contents of your stomach. if that sounds dramatic... it is.

so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. up next a top technician will be joining wilfred to see which sectors will lead the next market rally. >> and parental

responsibility -- parental privacy, some pantres' spending habits may have trouble for their retirement that story ahead

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welcome back with the dow posting its 15th record chose of the year what are things to look out for joining me now is managing director of technical strategy good afternoon to you. >> thanks, wil. >> let's start with the broader s&p and compare it to us for some of the key moving day averages. >> the markets had a pretty good run. 6% off the july lows kind of a little bit extended in the short term and people are concerned about a top developing but when you look at of the moving averages, cliche stuff but the 50-day lines up almost perfectly with the highs from the beginning of the year. that's 2872. the next level down is 4% from where we had and that's 28 up so this takes us into very big support levels so i think that's worn is the development that keeps the market intact. >> a little bit overextended and

nothing too worrying sector performance, first up, in the industrials. >> let me just see -- lut these guys away. look at the relatively performance in twine and the legaltive strength starts to tick up. the next chart is really quite slope but coming into july we saw breadth expand in cyclicals. under a tremendous amount of pressure through '18 and i think it's starting to expand here. >> let's have a look at banks as well. >> the next one here, if we look at the xlf or bank index, and that's really key to getting the financials moving, the big banks, and they have been horrendous relativestrength deteriorating and a pretty horrible chart and already back to levels we've seen in 2018 and it's not great. if you're back into a lot of support, the market will keep going and we think thereby, this

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time now for the takeaway. first up, senator bernie sanders calling for a break-up of the big banks. sanders introducing a bill that would require the break-up of any financial company that has total exposure of more than 3% of gdp that includes big names like jpmorgan, goldman sachs, bank of america, among others. >> yeah. >> serious >> well, i think it's highly unlikely to pass, but if your assets and total exposure is more than 3% of gdp, the main point the banks will push back on is they are less likely to fail and they have taken steps against that and capital levels are significantly elevated from where they were pre-crisis there's the chart that highlights that. clearly it fell a little bit as the banks' share prices fell into the sector and we're higher and there's more capital, and there's also less leverage this the chart is tangible

assets over equity and clearler the legend spiked as the crisis got worse and much, muchler to where we were interest before. you can still criticize scale so look at europe cran stocks compared to the -- european stocks compared to the u.s. stocks. >> it's actually remarkable in a way that at least by sanders' calculation it's still a resident issue that you want to villainize the banks. >> and president trump has gone the other way saying we need to loosen regulations on the banks. >> had a bit of a win on amazon, a tech company and now is focusing on the banks. >> on the point of amazon it's cheap. chef bezos at a gala in washington saying but origin is, quote, the important work that i'm doing. it's hoping to reduce the cost

of space travel and i guess space travel is more important than buying cheap products online. >> the way that he frames is that there's going to be access to massive energy resources across the galaxy as opposed to just, you mow, tourism into space or scientific exploration so i guess if you're thinking that far ahead that you want to exploit the resources. >> the risk, mike, if there is up, we're reading too much into this, is he about to step down >> i think he's about to put a lot of money into it. >> i don't think so. >> you judge that kind of management talk from bezos and he gets a lot of sleep he schedules his you have to meetings in the morning and has it all figured out. >> and i remember robert frank saying he views that project as more of his philanthropy contribution to society and makes sense in that context. finally, let's talk ratings. the nfl got tacked last year in tv ratings but is scrambling to daylight this season does that make sense >> makes sense.

>> scrambling to daylight means you're running towards an open field. >> sunday's cbs matchup between the new york giants and new orleans saints had a 14% rating compared to 4% last season baltimore ravens and pug steelers saw a 12% boost the lone decline came from the dallas lions and dallascowboys with a 7% dip. >> is it about the matchup >> to a degree there's been better more competitive games, ones that people went with-of-down to the wire hard to know why exactly the ratings were declining tv in generally is in decline and, therefore, the nfl is if anyone were to quit watching for political reasons they did it last year year over year you pick it up. >> other wild card factors depending on the weather and whether or not people want to stay inside and watch. a few months in and we look at

the cumulative figure we'll get a sense of whether they are bouncing back. >> and what's never changed is that for tv football is popular even i but they're actually spending twice as much on their adult children we'll break down the nudges next. >> coming up on "fast money," former g.e. insider and orm rmeo c will a weigh in on what's next for the company.

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welcome bab. parents are spending twice as

much on their adult children than they're saving for retirement sharon epperson joins with us the details of the story sharon. >> well, wilf when you factor in the amount parents contribute to the college education it's not that surprising they are spending a lot of money on dult children but this much, $500 billion a year that's how much parents are spending on the children when they are 18 to 34 years old. meanwhile, they are only putting half that amount, $250 billion a year into their own retirement accounts according to a new report by merrill lynch and age wave the study found 8 out of 10 parents provided children with financial support and paying for college accounts for only one fourth of the total. parents pay a variety of expenses long after the kids graduate including some or all of food and groceries, cell phone service, car expenses, vacations, rent or mortgage. most parents are realistic about the fact that by paying for this

they have to make financials sacrifices half said they would pull money from a savings account and a quarter would take on debt or pull money from retirement savings. as a result the bank of mom and dad is often overdrawn and retirement accounts are underfunded. the bottom line sfroiss parents make today could be devastating to their own financial future. can you find out more about this story by going to your money at cnbc.com. >> the cut off is 34 i have a year. i need to ring my mother. >> why is this getting worse i mean it reminds me of the story we've been doing about adult kids living with their parents. and not buying new homes. >> right. >> and now they are getting fully supported. >> they are living with parents, they're marrying later but they're also things that parents set up when their kids are betweens and teens that continue all of the subscription services we think are so great because i love to automatic parents. they are on the netflix account on the family plan or the cell

phone bill. >> i have a lot of that. >> you started that. once in college, a lot of the students are keeping up with the joneses, trying to maintain the lifestyle they had at home living with mom and dad, not on a budget and then they graduate and want to continue that. and the salaries they get out of college aren't that much more than their parents got out of their first jobs it's hard to maintain that kind of lifestyle. >> but that lifestyle, the parents are willing to support i get the college education thing, get us to a $500 billion number but cell phones and things like that it's not going -- it's not getting to you that number. >> food and groceries and paying rent, paying mortgage, you know, that can add up as well. >> okay. sharon, great stuff thanks for joining us right. what do queen elizabeth mark cuban and llbi gross have in common i don't know the answer i'm lookin

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wall street knows him as a wonder investor. but bill gross turns out is also a renowned stamp collector his collection is going up on the auction block. our robert frank joins from us the auction location in new

york robert >> hey, sarah, we are here at the palace hotel where the segal auctions will kick-off what will be the most expensive single stamp auction ever, about $10 million. all of that is because bill gross, the stamp kin o king and the bond king is selling he had what many consider the most valuable u.s. collection of stamps ever assembled. a complete collection. he had every u.s. stamp issued between 1847 when they started issuing stamps and then the 1930s. tonight he starts selling. the big question is what will the stamp market, which has actually doubled in the last ten years be like without bill gross? lots the questions over the sale we will show you some of the blocks the first is called the bible block. now this is six stamps from 1847 that was as i mentioned the first u.s. stamp assembled it was superrare to have six it's called the bible block because it was discovered in a bible in 1912 by the owner and it kept them very well preserved and rare

the second one is my favorite. it's called the blue hawaiian missionary and this is also from the 180 ohs. between 500 and $750,000 guys. we have the results tomorrow back to you. >> we look forward to those -- you'd be annoyed to use one upon a letter robert frank that's does it to be "closing bell." >> "fast money" starts now "fast money" starpts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. the traders are pete tharjen tim seymour on guy adami and karen finerman tilray getting smoked after hours. convertible note offering raising capital. we tell you what it meansfare the kbz craze backup but the general electric sharmds in the dark as the company grapples with saving the dividend while executing a turn around. bob nardelli speaking out for th